Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Investor Presentation (March 2005)

20 slides from Tokyo Electric Power's investor presentation, Mar 30, 2005

  1. Slide 1: FY 2005 Business Management Plan Presentation Materials

    FY 2005 Business Management Plan Presentation Materials March 30, 2005 Tsunehisa Katsumata President Tokyo Electric Power Company All Rights Reserved ©2005 The Tokyo Electric Power Company, Inc.

  2. Slide 2: Regarding Forward Looking Statements (Performance Projections)

    Regarding Forward Looking Statements (Performance Projections) Certain statements in the following presentation regarding Tokyo Electric Power Company’s business operations may constitute “forward looking statements.” As such, these statements are not historical facts but rather predictions about th

  3. Slide 3: Table of Contents

    Table of Contents 2 1 FY 2005 Business Management Plan: Key Points 3 2 Management Targets 4 3 Electricity Sales Volume Expansion Targets 5 4-1 Promotion of Cost Reductions 6 4-2 Specific Measures for Promoting Cost Reductions 7 5 Balance Sheet Improvement 8 6-1 Approach to New Businesses 9 6-2 Infor

  4. Slide 4: FY 2005 Business Management Plan: Key Points

    1. FY 2005 Business Management Plan: Key Points 3 Position Position This FY 2005 Business Management Plan has been drafted as an action plan for items to be addressed over the coming three years under the TEPCO Group’s new medium-term management policy Management Vision 2010 (announced in Oct. 2004)

  5. Slide 5: Management Targets

    2. Management Targets 4 FY2005 Buisiness Management Vision 2010 Targets Management Plan (FY2010 Targets) (FY2005-FY2007) Expand Electricity About 4 billion kWh At least 10 billion kWh Increase Sales Sales Volume over 3 years from FY 2004 to FY 2010 Capital Expenditures About \620 billion Improve eff

  6. Slide 6: Electricity Sales Volume Expansion Targets

    3. Electricity Sales Volume Expansion Targets 5 (Unit: Billion kWh) (%) Increase the share of all-electric Breakdown of the Electricity Sales Volume Increase 2.0 housing in new housing construction 25.0 (Target of about 4 Billion kWh over 3 Years FY 2005 – FY 2007) to about 19% (FY 2007) 1.52 Househ

  7. Slide 7: Promotion of Cost Reductions

    4-1. Promotion of Cost Reductions 6 (Unit: Billion yen) Number of Employees (right-hand scale) 2,000 43,166 42,672 44,000 42,170 41,882 41,403 40,725 42,000 39,619 1,600 Capital Expenditures 38,950 37,500 or less (at the 38,500 end of FY 2007) 40,000 1,436.5 (left-hand scale) 1,279.8 1,200 1,131.6 3

  8. Slide 8: Specific Measures for Promoting Cost Reductions

    4-2. Specific Measures for Promoting Cost Reductions 7 Cost CostReductions Reductions Restrict Capital Expenditures and Reduce Management Vision 2010 Depreciation Expenses Operating Efficiency Depreciation expenses are declining along with the restriction of capital expenditures in recent years; con

  9. Slide 9: Balance Sheet Improvement

    5. Balance Sheet Improvement 8 (Unit: Trillion yen) Interest-bearing Debt (left-hand scale) (%) At least 22% 11.0 10.53 10.50 10.48 10.18 (end of FY 2007) 9.86 25.0 10.0 9.42 Shareholders’ Equity Ratio 8.97 (right-hand scale) 9.0 8.58 7.93 8.0 <Management Vision 2010> 20.0 About At least 25% 7.0 16.

  10. Slide 10: Approach to New Businesses

    6-1. Approach to New Businesses 9 (Operating Revenues, Billion yen) Living Environment and (Operating Profit, Billion yen) Lifestyle-related 600 About ¥500 billion in operating + Overseas 120 revenues and ¥25 billion in operating 500 profit from non-electricity businesses 100 (FY 2007) Energy and 40

  11. Slide 11: Information and Telecommunications Businesses

    6-2. Information and Telecommunications Businesses10 (Unit: Million homes) (Operating Revenues and Interest- (Operating Profit, TEPCO Hikari bearing Debt; Billion yen) Billion yen) service area and 250 251.8 25 Target: 1.0 million Operating Revenues number of 100 Interest-bearing Debt subscribers su

  12. Slide 12: Energy and Environmental Businesses

    6-3. Energy and Environmental Businesses 11 (Unit: Billion yen) Gas Business Operating Revenues Energy and Environmental Solutions 30 Kanto Natural Gas Development Co. 27 TEPCO gas pipelines 25 pipelines Gas provision Gas company 25 Dispersed My Energy Corporation Higashi-Ogishima power sources JAPA

  13. Slide 13: Overseas Businesses

    6-4. Overseas Businesses 12 Company or Project Name Location Operations Starting Date, Etc. TEPCO Investment Eurus Energy Holdings US, UK, Italy, etc. Capital participation Sept. 2002 approx.14.7billion Tarong North Power Station(Pow er Generation) Australia Commenced operations August 2003 approx.1

  14. Slide 14: Ordinary Profit Targets

    7. Ordinary Profit Targets 13 (Unit: Billion yen) (%) 5.4 At least ¥350 billion (FY 400 ROA (right-hand scale) 2005 – FY 2007 average) 6.0 5.1 5.1 345.9 350.0 350 4.8 320.0 319.5 4.5 304.4 5.0 300 5.0 280.8 4.5 3.7 3.5 4.0 250 Ordinary Profit 217.3 207.9 About 4.0% (left-hand scale) Ordinary profit

  15. Slide 15: Free Cash Flow Targets

    8. Free Cash Flow Targets 14 (Unit: Billion yen) 900 850.0 800 700 649.4 604.5 600 113.4 543.5 506.2 87.2 Others 500 80.9 77.7 (Investments and Loans) 410.4 94.0 81.0 80.9 Dividend Payments 400 46.6 87.7 About ¥500 billion 67.6 (FY 2005 – FY 300 2007 average) 436.1 455.0 Reduction of Interest-bearin

  16. Slide 16: Summary

    9. Summary 15 Efficiency Efficiencygains gainsthrough throughcompany-wide streamlining company-wide streamlining Efficiency gains distributed based on the profit-sharing concept Free Cash Flow Target: About ¥500 billion (average FY 2005 – FY 2007) Provision of good-quality, low- Reduction of Investm

  17. Slide 17: (Reference) Demand Outlook and Main Changes to Facilities Plans

    (Reference) Demand Outlook and Main Changes to Facilities Plans 16 (Unit: Billion kWh, %) Yearly Average Increase Demand Outlook FY 2003 FY 2004 FY 2005 FY 2014 (actual) (preliminary) (projected) (projected) Rate (FY 2003 – FY 2014) -2.7 (1.5) 5.8 (1.3) 0.0 (2.6) Lighting 86.9 92.0 92.0 102.1 1.5 (1

  18. Slide 18: (Reference) Capital Investment Plan

    (Reference) Capital Investment Plan 17 (Unit: Billion yen) FY 2003 FY 2004 FY 2004 FY 2005 FY 2006 Capital Investment Plan (actual) (planned) (preliminary) (planned) (planned) Hydroelectric 23.2 24.6 18.2 27.3 4.5 Thermal 81.9 47.5 42.1 35.2 74.9 Nuclear 0 0 0 0 0 Power Sources Subtotal 105.1 72.1 6

  19. Slide 19: (Reference) Management Vision 2010

    (Reference) Management Vision 2010 18 Group Management Principle Contribute to the realization of affluent living and pleasant environment by offering optimal energy services Group Management Guidelines The TEPCO Group promotes this Management Principle, and strives to become the top energy service

  20. Slide 20: (Reference) Numerical Targets 2010

    (Reference) Numerical Targets 2010 19 * Prior targets under Challenge 20 Plus 1 Numerical Numerical Targets Targets 2010 2010 “Challenge 20 Plus 1” [target year of FY 2005] [target year of FY 2010] Improve Improve efficiency efficiency by by at at least least 20% 20% Operating Improve efficiency by

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